CarMax (KMX) has marked a mixed performance with varied market perception. Despite a notable downtrend in earnings and shareholder returns over the last three years, the stock surged by 13% this past week.
Operational losses have been recorded, with a net income from continuing operations at $418 million as of August 2024. Used cars sales remain steady with Q3 reporting
$8B in Auto Finance Originations and
770K used cars sold. These numbers suggest an
undervalued stock, projected as a potential asset for hedge funds. Goldman Sachs considers KMX with high consensus ROE, while Madison Mid Cap Fund has trimmed the same. Critical news on KMX includes Q2 2025
earnings falling in line with expectations, despite mixed results as loan losses affected profits. Predictions on future performance are divided with some believing KMX struggles in allocating capital. Oppenheimer believes moderating used-car prices To be a positive for KMX and its competitors. Meanwhile, a 33% drop in Q1 profits signals potential headwinds. However, despite a mixed bag, some still see potential in CarMax's business predicting higher ROE and comparably better investment than competitors.
Carmax KMX News Analytics from Tue, 26 Mar 2024 13:36:34 GMT to Sun, 01 Dec 2024 01:14:00 GMT -
Rating -1
- Innovation -3
- Information 5
- Rumor -1
